Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
      What South Africans searched for most in 2025

      What South Africans searched for most in 2025, according to Google

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Treasury tight-lipped over set-top box probe

    Treasury tight-lipped over set-top box probe

    By Gaelyn Scott21 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    remote-control-640

    National treasury is keeping mum over claims that it has recommended the suspension of South Africa’s controversial set-top box production.

    Set-top boxes decode digital signals for analogue television sets and government plans on subsidising 5m poorer households as part of a broadcast migration process.

    Last year, the Universal Service & Access Agency of South Africa (Usaasa) appointed 27 service providers in a multibillion-rand deal for the supply of equipment such as set-top boxes.

    Production of the boxes, though, has already hit a snag this year.

    Usaasa last week said it has suspended production amid communication minister Faith Muthambi’s challenge of a supreme court of appeal ruling over the encryption of the boxes.

    But the set-top box tender risks further complications as Muthambi says, in a speech posted on her department’s website, that a treasury probe has also recommended a suspension of the production amid issues over the tender process and its costs.

    Muthambi, in October last year, requested that treasury probe the procurement of the set-top box tender. And, she now says the findings of treasury’s report have been concluded.

    “The report recommended that the production process of set-top boxes be stopped with immediate effect and a process that will lead to the integrity and value for money be initiated,” said Muthambi.

    Communications minister Faith Muthambi
    Communications minister Faith Muthambi

    Muthambi further said the recommendation from treasury was that the “process may be faced with the legal challenge and that with the current situation, the programme will not realise its objective of providing 5m set-top boxes in consideration of the current funding”.

    In the speech, which Muthambi’s office claims she read to parliament last week, the communications minister said the probe found that Usaasa allegedly contravened its own supply chain management policy in an appointment of EY (formerly Ernst & Young) by not following a competitive bid.

    Muthambi said the probe has further raised issues such as the appointment of companies part of the bid evaluation committee, EY management costs, and the evaluation and adjudication of bids.

    Other issues revolve around pricing of the set-top boxes, said Muthambi in the speech document.

    “When allocating supply volumes by Usaasa, companies that quoted lowest prices were not granted volumes. Instead prices were negotiated upwards and not downwards leaving the cost of set-top-boxes procured at 37% above the market price at retail. This is in contravention of the supply chain management and Public Finance Management Act provisions for ‘value for money’,” said Muthambi.

    “The national treasury revealed that Usaasa had already received an amount of R1,6bn in their bank account. Usaasa has earned interest amounting to R127m. The report further reveals that Usaasa spent R10,2m out of the interest earned which national treasury indicates that it is prohibited to spend interest earned from subsidy funding without obtaining its permission which Usaasa did not obtain,” Muthambi added.

    Meanwhile, treasury, its office of the chief procurement officer and its office of the accountant general have refused to comment on Muthambi’s claims about the findings of the probe.

    “Their response is that they will not respond and that issues related to this should be forwarded to department of communications,” treasury spokesman Xolisa Dodo said via e-mail.

    Muthambi’s spokesman said she, together with relevant players, are still studying the document.

    “The department has received the report and recommendations from national treasury, and is in consultations with Usaasa and the department of telecommunications & postal services (which provides an oversight for Usaasa),” said ministry spokesman Mish Molakeng.

    Marian Shinn
    Marian Shinn

    “It is only after these consultations that the department will be able to make further announcements on the next steps to be followed”, Molakeng said.

    Complicating matters is that while Muthambi’s department runs South Africa’s digital migration process, Usaasa reports to telecoms minister Siyabonga Cwele.

    Usaasa late last week said it “cannot confirm or deny the information” of the claims contained in Muthambi’s speech about the probe.

    “The department of communication has recently handed the investigation report to Usaasa and the telecoms department,” Usaasa CEO Lumko Mtimde said.

    “Usaasa is studying the report and will decide on the way forward once the consideration is concluded and the board had deliberated on the report,” Mtimde said.

    Meanwhile, telecoms ministry spokesman Siya Qoza said late last week that the ministry had received the findings of the probe and was studying it.

    Democratic Alliance MP Marian Shinn on Wednesday also called on Muthambi to immediately release the findings of the probe.

    “At last week’s joint parliamentary committee hearing into the status of the broadcast digital migration programme, minister Muthambi, who is the custodian of the programme, neglected to mention in her presentation that the enquiry had been instigated and had finished its work,” Shinn said.

    “In response to a question from me, she admitted that the report had been received and that relevant action was still being considered. She promised to make the report public when the decisions on appropriate action had been taken. I now call on her to make the full report immediately available.”

    Amid these disputes, MPs in parliament last week criticised Muthambi for the slow march to digital migration in South Africa.

    South Africa missed an International Telecommunication Union deadline in June last year to switch over to digital migration.

    But in a statement last week, the communications minister’s office said that the digital migration project is “well on track” with over 30 000 households in the Northern Cape, Free State, Mpumalanga and Limpopo having registered with the South African Post Office to receive set-top boxes.

    Fin24



    EY Faith Muthambi Lumko Mtimde Marian Shinn Siyabonga Cwele Usaasa
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEFF roasts Vodacom over data costs
    Next Article Lack of spectrum keeping prices high: MTN

    Related Posts

    Solly Malatsi shakes up Usaasa board

    Solly Malatsi shakes up Usaasa board

    16 October 2025

    Digital TV project in peril as installers warn of set-top box fiasco

    30 January 2025
    The Sentech television broadcasting tower in Auckland Park, Johannesburg

    220 000 set-top boxes, 63 days: Sentech’s mission impossible?

    27 January 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

    BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}